Markets & Finance

Bear Stearns Downgrades Sanmina-SCI

Analyst Thomas Hopkins believes Sanmina-SCI is likely to report in-line second-quarter results. He expects the company to guide sequentially higher but that guidance is likely to be weaker than current consensus estimates due to a stagnant customer mix.

He says his Sanmina-SCI downgrade brings the individual stock pick in line with Septneber 2004 sector downgrade. He notes a cloud over telecom capital expenditure spending (due to consolidation) is problematic for the electronic manufacturing services turnarounds.